When is the Budget and what might be in it?

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When is the Budget and what might be in it?

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Labour’s first Budget for 14 years will be delivered by Chancellor Rachel Reeves on Wednesday 30 October. She has warned that it will involve “difficult decisions”.

Government sources have told the BBC the Budget will include tax rises and spending cuts to the value of £40bn.

What is the Budget?

Each year, the chancellor – who is in charge of the government’s finances –

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It outlines the government’s plans for raising or lowering taxes. It also includes big decisions about spending on things like health, schools, police and other public services.

The previous ************* Chancellor, Jeremy Hunt,

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, before the general election.

After a change of government, the new chancellor holds another Budget to set out their priorities.

When is the autumn Budget and what time is the speech?

The 2024 autumn Budget is on Wednesday, 30 October.

The Budget speech usually starts at about 12:30 *** time and lasts around an hour. It will be broadcast live on the BBC iPlayer and on the BBC News website.

The current leader of the opposition, ************* Party leader Rishi Sunak, will give a speech responding to the Budget as soon as Reeves sits down.

How much money does the government want to raise?

Labour has repeatedly said that it needs to make difficult financial decisions.

In October, government sources told the BBC

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would be announced in the Budget.

When Labour took power in July, Reeves said it had “inherited the worst set of circumstances since the Second World War” regarding government finances – something the Conservatives deny.

Reeves said she was facing a £22bn “****** *****”. This gap is due to

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over how much money it can borrow over the next five years.

The government has said that boosting the *** economy is its priority.

Following a brief recession at the end of 2023, the *** recorded the fastest growth in the G7 group of the world’s richest nations during the first six months of 2024.

However, the Office for National Statistics has since warned

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What might be in the Budget?

At the election, Labour promised not to increase taxes on “working people”. It said it would not raise VAT (value added tax), income tax or National Insurance (NI).

But there has been lots of speculation about what the Budget could contain:

National Insurance contributions by employers

The prime minister and chancellor have refused to rule out an increase in employer NI payments. Reeves said Labour’s election pledge related to employee payments.

Employers

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At the moment companies do not pay NI on pension contributions they make for staff, but reports have suggested this could change.

Businesses have argued that raising NI for employers will make it ******* to hire staff and create jobs.

Inheritance Tax

which is currently 40%, is usually paid on the value of a deceased person’s assets above a threshold of £325,000.

It is thought

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which affect how much inheritance tax people have to pay are being considered.

Capital gains tax (CGT)

This tax is

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that have increased in value, such as second homes or investments.

It is paid by individuals and some business owners. For higher earners, the levy is currently 24% on gains from selling additional property, or 20% on profits from other assets like shares.

There has been speculation that these rates could be increased but the prime minister appeared to dismiss suggestions

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Pension taxation

There are various ways the chancellor could raise more money

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That could include reducing the cap on tax-free lump sums from pension pots, cutting the tax break for employers putting money into employees’ pensions, or changing the system of

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At the moment, basic rate taxpayers get tax relief at 20% and higher rate taxpayers at 40% or 45%.

The government could introduce a single flat rate of relief which would make the system less generous for higher earners, although reports have suggested this is now unlikely.

Stamp duty

Stamp Duty Land Tax is paid if you buy property or land over a certain price in England and Northern Ireland.

In 2022, the rate at which people start to pay was increased from £125,000 to £250,000. For first-time buyers it rose from £300,000 to £450,000.

However, the higher thresholds are only due to last until March 2025 after which they will return to the original levels. Labour has not committed to an extension.

Non-dom tax status

The term

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. As a result, they do not pay *** tax on money they make elsewhere.

In the March Budget, the then-Chancellor Jeremy Hunt said

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, although there were some concessions.

Labour has said it wants to toughen the existing plans, although these plans

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amid worries they could bring in less money than expected.

Fuel duty

Fuel duty

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. It was frozen between 2012 and 2022, and cut by 5p in March 2022 when pump prices surged following Russia’s invasion of Ukraine.

However, some motoring groups argue the cut was never passed on to motorists and

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it could be reversed

What has already been announced?

What happens after the Budget speech?

The Treasury, the government department in charge of the economy and public spending, publishes a report alongside the Budget speech. It gives more details about the measures announced and what they will cost.

The independent Office for Budget Responsibility (OBR), which monitors government spending, also produces an independent assessment of the health of the *** economy.

MPs will spend several days debating the plans.

They are then asked to approve the proposals and the government introduces a Finance Bill to turn the Budget announcements into law.

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#Budget

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